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Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Otis Worldwide's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was $236 Mil. Otis Worldwide's average total debt for the quarter that ended in Mar. 2026 was $8,365 Mil. Therefore, Otis Worldwide's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 2.82%.
Otis Worldwide (NYSE:OTIS) Effective Interest Rate on Debt % Explanation
Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.
Otis Worldwide Effective Interest Rate on Debt % Related Terms
Otis Worldwide Effective Interest Rate on Debt % Historical Data
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The historical data trend for Otis Worldwide's Effective Interest Rate on Debt % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Otis Worldwide Effective Interest Rate on Debt % Chart
OTIS vs INIO, XYL, DOV: Effective Interest Rate on Debt % Comparison
For the Specialty Industrial Machinery subindustry, Otis Worldwide's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Otis Worldwide Effective Interest Rate on Debt % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Otis Worldwide's Effective Interest Rate on Debt % distribution charts can be found below:
* The bar in red indicates where Otis Worldwide's Effective Interest Rate on Debt % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data,
the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data.
Effective Interest Rate on Debt % is displayed in the 30-year financial page.
What does a Effective Interest Rate on Debt % of 2.82% mean?
Otis Worldwide (OTIS) has a Effective Interest Rate on Debt % of 2.82% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Otis Worldwide and its competitors.
Is Otis Worldwide's Effective Interest Rate on Debt % too high?
Otis Worldwide's current Effective Interest Rate on Debt % is 2.82%. Overall, Otis Worldwide has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Otis Worldwide's Effective Interest Rate on Debt % compare to INIO and XYL?
Otis Worldwide's Effective Interest Rate on Debt % of 2.82% can be compared against companies in the Industrial Products industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for an Industrial Products company?
A good Effective Interest Rate on Debt % depends on the Industrial Products industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Otis Worldwide and its competitors. Otis Worldwide's current Effective Interest Rate on Debt % is 2.82%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otis Worldwide stock overvalued right now?
Based on GuruFocus' analysis, Otis Worldwide (OTIS) is currently considered Modestly Undervalued. The stock's GF Value™ is $101.52, compared to a current price of $73.45 — trading 27.6% below its estimated fair value. The current Effective Interest Rate on Debt % is 2.82%. Otis Worldwide's overall GF Score™ is 76/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Otis Worldwide (OTIS), the current Effective Interest Rate on Debt % is 2.82% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Otis Worldwide (OTIS) Overvalued in 2026?
Based on GuruFocus' analysis, Otis Worldwide stock appears to be undervalued.
The current stock price of $73.45 is trading 27.6% below its estimated GF Value™ of $101.52.
GuruFocus considers Otis Worldwide to be Modestly Undervalued.
Key valuation signals for OTIS:
Effective Interest Rate on Debt %: 2.82%
GF Value™: $101.52 vs. price of $73.45 (27.6% below fair value)
No single metric tells the full story. See the OTIS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Otis is the largest global elevator and escalator supplier by revenue with around 18% global market share. In 1854 Otis' founder and namesake Elisha Graves Otis, invented a safety mechanism that prevented elevators from falling if the hoisting cable failed. The company's product and service lifecycle begins with installations of elevator units in new buildings, later selling maintenance services on the units, and eventually replacement of the units after the average 15- to 20-year useful life of an elevator. As the largest global OEM, Otis has amassed an installed base under service that exceeds 2 million elevators. Its business model is similar to that of its closest competitors Kone, Schindler, and TK Elevator.
76GF Score
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Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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